Annual report [Section 13 and 15(d), not S-K Item 405]

Income Taxes (Tables)

v3.25.4
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2025
Income Tax Disclosure [Abstract]  
Schedule of Loss From Continuing Operations Before Income Taxes
The Company's loss from continuing operations before income taxes is domestic-sourced only, and was as follows for the periods presented:

(in thousands) 2025 2024
Loss from continuing operations before income taxes $ (5,562) $ (10,771)
Schedule of Income Tax Expense From Continuing Operations
The Company's income tax expense from continuing operations consisted of the following:
(in thousands) 2025 2024
Current income taxes:    
Federal $ (26) $ (39)
State 134  (144)
Total current income taxes 108  (183)
Deferred tax expense:  
Federal (98) 1,653 
State 12  336 
Total deferred income taxes (86) 1,989 
Income tax expense $ 22  $ 1,806 
Schedule of Reconciliation of Effective Income Tax Rate
The reconciliation of the statutory federal income tax rate to the effective tax rate for the current year in comparison of prior year in accordance with the adoption of ASU 2023-09 is as follows:
(in thousands) 2025 2024
Amount % Amount %
Tax at U.S. statutory rates $ (1,168) 21.0  % $ (2,262) 21.0  %
State income taxes, net of federal tax benefit1
340  (6.1) % (7) 0.1  %
State valuation allowance (225) 4.0  % 158  (1.5) %
Federal valuation allowance 966  (17.3) % 4,095  (38.0) %
Stock option compensation 104  (1.9) % 37  (0.3) %
Other nondeductible expenses 5  (0.1) % (12) 0.1  %
Other, net —  —  % (203) 1.8  %
Total $ 22  (0.4) % $ 1,806  (16.8) %
1The state that contributes the majority (greater than 50%) of the tax effect in this category is South Carolina..
Schedule of Income Taxes Paid (Net of Refunds)
A summary of total income taxes paid (net of refunds), in accordance with the adoption of ASU 2023-09 for the year ended December 31, 2025 is as follows:

(in thousands) 2025
U.S. Federal $ (20)
U.S. State total $ (73)

Income taxes paid (net of refunds) exceeded five percent of total income taxes paid (net of refunds) in the following jurisdictions:

(in thousands) 2025
Georgia $ 77 
South Carolina 12 
Illinois (143)
Virginia (17)
Schedule of Significant Components Deferred Tax Assets and Liabilities The components of the Company's deferred tax assets and liabilities from continuing operations are as follows at the respective year ends: 
(in thousands) 2025 2024
Deferred income tax assets:    
Inventory valuation reserves $ 306  $ 1,570 
Inventory capitalization 96  550 
Accrued bonus 483  318 
State net operating loss carryforwards 1,911  2,055 
Federal net operating loss carryforwards 5,813  4,075 
Lease liabilities 3,037  7,484 
Interest limitation carryforwards 1,302  1,488 
Intangible asset basis differences (671) 781 
Other 752  1,444 
Total deferred income tax assets 13,029  19,765 
State valuation allowance (1,757) (2,026)
Federal valuation allowance (6,681) (7,040)
       Total net deferred income tax assets 4,591  10,699 
Deferred income tax liabilities:
Fixed asset basis differences 2,163  4,010 
Prepaid expenses 293  300 
Lease assets 2,376  6,709 
Total deferred income tax liabilities 4,832  11,019 
Deferred income taxes, net $ (241) $ (320)